The US banking sector is operating on all cylinders and is greatly benefiting from the following:
- Higher interest rates and steepening of yield curve
- Wealth Management operations aided by strong equity markets
- Rising loan demand aided by stimulative tax reform policies
- Less Government Regulations in the financial services sector
PNC is one of the largest US Regional banks and acquired all of RBC’s divestiture of its US branches in 2008-2009.
PNC is well positioned to benefit from the above industry trends and its equity interest in Blackrock is another positive.
Dividend growth is strong and this is expected to continue in a period of increasing profits and a low dividend payout ratio.